Which of the following sets of FINRA rules focuses on fair dealing with the public?
The Conduct Rules
. Conduct Rules deal with a broker-dealer's (and representative's) relationship with the customer and the public.
Who is bound by the FINRA fair dealing with customers rule?
(a)(1) Implicit
in all member and registered representative relationships with customers and others
is the fundamental responsibility for fair dealing.
Which of the following does FINRA have the power to do?
FINRA
regulates all matters related to investment banking (securities underwriting)
, trading in the OTC market, trading in NYSE-listed securities, and the conduct of FINRA member firms and associated persons. FINRA also regulates investment companies and limited partnership transactions.
Which of the following entities considers appeals of decisions made in Department of Enforcement DOE actions?
Which of the following entities considers appeals of decisions made in department of enforcement (DOE) actions?
A National Adjudicatory Council (NAC) ruling may be appealed to the appellate courts
, then to the SEC.
Which of the following entities is responsible for establishing the guidelines for securities rules that are enforced by each state?
MSRB rules on securities firms are enforced primarily by
the SEC and FINRA
.
What are the rules of fair?
Fair competition, respect, friendship, team spirit, equality, sport without doping, respect for written and unwritten rules such as
integrity, solidarity, tolerance, care, excellence and joy
, are the building blocks of fair play that can be experienced and learnt both on and off the field.
What is the FINRA Rule 2330?
Rule 2330 requires
firms to establish and maintain written supervisory procedures reasonably designed to comply with the rule's standards
. … Firms also must create training programs for registered representatives who sell deferred variable annuities and for registered principals who review these transactions.
Who do FINRA rules apply to?
FINRA oversees more than 3,500 brokerage firms, 154,000 branch offices, and nearly 625,000 registered securities representatives, as of 2019. 3 FINRA
regulates the trading of equities, corporate bonds, securities futures, and options
.
Who needs a FINRA license?
You must be registered with FINRA if you're
engaged in the securities business of your firm
, which includes salespersons, branch managers, department supervisors, partners, officers and directors. You are required to pass qualification exams to demonstrate competence in your particular securities activities.
Who does FINRA Rule 3210 apply to?
The purpose of Rule 3210 is to
govern accounts opened or established by advisors and brokers at firms other than the member firm where
they are employed or registered. Accounts that financial advisors and brokers have with their employers are easily monitored.
Which of the following is the largest self regulating organization SRO )?
Although it has regulatory powers, FINRA is not part of the government. It is a not-for-profit entity and the largest self-regulatory organization (SRO) in the securities industry within the U.S. An SRO is a membership-based organization that creates and enforces rules for members based on federal laws.
Which of the following does the MSRB rely on for enforcement of these rules?
Which of the following does the MSRB rely on for enforcement of these rules? The MSRB
regulates all matters related to the underwriting and trading of state and municipal securities
but does not have enforcement powers. It depends on other SROs (e.g., FINRA) for the enforcement of its rules.
Which of the following is a self-regulatory organization?
A self-regulatory organization (SRO) is one that has the power to set industry standards and regulations through its own efforts. … Examples of financial SROs include
FINRA
and the New York Stock Exchange (NYSE).
Is an OSJ a branch?
An OSJ branch must have at least one on-site supervisor who is a qualified and registered principal with the firm. The
main office of each firm is always considered
an OSJ and has supervisory jurisdiction and responsibility over all the firm's non-OSJ branch offices.
What is the difference between a broker and a dealer?
While a broker facilitates security trades on behalf of investors, a
dealer facilitates trades on behalf of itself
. The terms “principal” and “dealer” can be used interchangeably. … By bidding on Treasury bonds and other securities, these dealers facilitate trading by creating and maintaining liquid markets.
Which of these would not be fully covered by SIPC insurance?
Terms in this set (14) Which of these would not be fully covered by SIPC insurance?
C, Gold is not a security
and is not covered by SIPC. Money markets, ETFs, mutual funds, and junk bonds are all types of securities.
